MESSAGE FROM OUR CEO’S DESK

Welcome to 2026! If the last few years felt like we were just trying to keep our heads above water, this is the year we finally swim. 🏊️ As I look at the landscape of HR for People Function clients this year, I’m seeing a shift from "panic-mode" to "precision-mode." The companies that are winning aren't the ones with the biggest budgets - they’re the ones with the most clarity.

Here are 5 trends I’m betting will continue into 2026, and exactly what I think you should be doing about them.

Trend #1

Return to office 2.0. The "WFH experiment" is seemingly over. Companies are calling people back, and the resentment is real.

• My Take: Apply the rules to everyone. Nothing kills culture faster than an executive who works from their vacation home while the marketing team is clocked in at a cubicle, headphones on, glued to their desk chair and to zoom. Use in-person time for connection, not just performative facetime. If your team is in the office just to sit on Zoom that’s not engagement - it’s obligation.

Trend #2

Job hugging. In an uncertain market, people aren’t “quiet quitting,” they’re clinging. They’re staying in roles they don’t like for security, which drags down morale and productivity.

• My Take: Identify the "huggers." It’s time for honest conversations. If someone isn't invested, help them find the door with dignity. Stagnant energy is a silent killer for startups. Invest in the people who want to be there, and support the exit of those who don't.

Trend #3

Permanently lean teams. Investors have stopped rewarding "growth at all costs." Lean teams are the new standard, and we’re feeling the burn.

• My Take: Ruthless prioritization. You cannot do 2024-level work with 2026-level headcount. Use tools to automate the junk. If a project doesn't directly move the needle on revenue or retention, kill it.

Trend #4

AI as the strategy lever. AI is no longer a "cool tool." It’s the baseline. If your HR team is still spending 80% of their time on admin, they’re becoming obsolete.

• My Take: Pivot to partnership. Let the bots handle policy FAQs and scheduling. Your HR people need to be in the room for talent density and leadership coaching. If they aren't adding value beyond "compliance," they’re at risk.

Trend #5

The skills-first pivot. The "pedigree" is dying. Degrees and prestigious past titles matter less than what someone can actually do right now.

• My Take: Hire for capabilities, not credentials. This is a belief we at PFunc have already held strong, but with AI it’s becoming even more widespread. With technical skills having shorter shelf lives, focus on "human" skills: critical thinking, conflict resolution, and adaptability. Stop hiring for resumes and start hiring for the ability to solve problems.

We’re building something different at People Function this year. We’re moving away from the "old guard" (looking at you, SHRM) and toward a model that actually respects the complexity of the modern workplace. The goal isn't just to survive 2026 - it's to build a company that people are actually proud to "hug" for the right reasons. We’re focused on stability, inclusivity, and sound business strategy, and we’re not looking back.

See you out there! 🫡

THE BRIEFING 📰

HR NEWS TO KNOW

The latest HR headlines and stories, curated with our perspective. 🤝

• Business Insider: Even the experts aren’t sure what job volatility will look like in 2026. With no consensus forecast to anchor planning, HR leaders should shift from prediction to preparedness by investing in flexible workforce models, scenario-based planning, and retention of critical capabilities. That way, companies remain resilient no matter the outcome. Read more here.

• Forbes: Warning! Women are leaving the workforce in droves as childcare costs continue to rise. For HR leaders, childcare affordability is no longer just a “benefits perk” conversation - it’s a real workforce stability risk. Instead of waiting to see how policies or markets shake out, get ahead by, again, investing in flexible work, childcare support, and stronger return-to-work pathways to retain talent and protect gender diversity. Read more here.

A few more stories we think you’d like:

• HRD: How to help your CEO avoid an Elon Musk–style Tesla crisis

• HR Dive: L&D teams are relying on AI to upskill and train employees

• HR Executive: 9 use cases for using AI to simplify work and strengthen strategy

COMPLIANCE CHECK

The latest HR compliance updates you need to know. Here’s what’s happening in Q1.

• National (effective 1/1/26): 19 states, including New York, New Jersey, and California, raised their minimum wage.

• Pennsylvania (effective 1/26/26): Race and religious creed protections now explicitly include hair texture, protective hairstyles, and religious head coverings, and employers are permitted to prohibit them only if they pose legitimate health and safety risks in the workplace.

• California (effective 2/1/26): Employers must provide a notice of workplace rights to all new hires and to all employees annually.

• New York (effective 3/18/26): The New York State Secure Choice Savings Program will require certain private sector businesses to provide retirement benefits.

THE OPPORTUNITY EXCHANGE 📈

ROLES ON OUR RADAR

Big news! We have a new job board! 😎 It’s packed with open roles across our client companies, making it easier than ever to tap into PFunc’s network. Hundreds of opportunities, dozens of companies, and a few standout roles highlighted below.

This week, we’re spotlighting director-level openings in our network.

• Allocate, Managing Director of Private Investments: Oversee private market research while helping build Allocate’s platform in this role that will allow you to be a part of “building the infrastructure that modernizes private markets access.”

• Inspiren, Director of Enterprise Growth: Drive new healthcare business by owning complex full-cycle sales while traveling up to 50% to build and close new opportunities.

• Small Door, Area Manager: New York– and Boston–based animal lovers will work in the field, supporting and optimizing day-to-day operations across veterinary practices while serving as a liaison between local teams and headquarters.

See a role you’re interested in? Reply to this email and we’ll try to connect you with the hiring team. Hiring for an open role yourself? Reply to have your job featured in an upcoming PFunc Pulse issue.

INSIDE PFUNC HQ ⋒

RECOMMENDED RESOURCE

Our lovely PFunc job board is powered by Getro. Their AI-powered platform brings together job openings from consulting firms like ours, along with VC clients, universities, and other organizations, making it easier to connect you with both the right role and the right people. We’re excited to see how this platform helps us and adds value to YOU. Stay tuned!

WHERE TO NEXT?

Our team is always on the move, popping up at the HR events we actually love. One worth checking out: Transform, happening March 23–25 in Las Vegas. We’ll be there soaking up ideas on the future of work in the age of AI, and just as importantly, stepping outside the conference to connect. We’re hosting a few fun, non-corporate side events that are a guaranteed break from panels and ballrooms, and we’d love to see you there!

Reply to this email if you’re planning to attend and want an invite, and reach out if you want to learn more!

HR TIP OF THE WEEK

CHRONICALLY ONLINE

For your enjoyment, one of our latest social media videos. (This doubles as a teaser for some exciting news coming later this month!)

Join 100,000+ followers across PFunc’s Instagram, TikTok, and LinkedIn, hailed as “the best HR social accounts online today.” 😉

STAY IN TOUCH 💌

If you’re interested in fractional HR support for your team, reply to this email or contact us to learn more about our offerings, pricing, and how we can support your growing company.

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